Walmart revives talks on sale of Asda stake
Walmart has revived talks to sell a stake in Asda after pausing plans to focus on the impact of the coronavirus pandemic.
The US giant, which is the largest retailer in the world, said it had restarted discussions with potential buyers after it was forced to temporarily abandon the move.
“Walmart and Asda have restarted conversations with a small number of third-party investors who are interested in acquiring a stake in Asda and partnering with Walmart, following renewed inbound interest,” a spokesperson told Reuters.
Asda’s plan to merge with rival supermarket chain Sainsbury’s was blocked by the Competition and Markets Authority last year.
Walmart then said it was considering a stock market listing for the UK business, before confirming in February that it was in talks with potential buyers over a majority stake in Asda. Walmart is expected to maintain a significant minority stake in any deal.
In March, it was reported that buyout firms Apollo Global Management, Lone Star Funds and TDR Capital had submitted first round offers for the UK grocer and were invited to the next stage of bidding.
The talks progressed until coronavirus hit later that month,
“We believe now is the right time to explore options for a third party to invest in our business to accelerate the long-term delivery of our value strategy, both in stores and online,” the Walmart spokesman said.